Bitcoin prices have soared following an assassination attempt on US presidential candidate Donald Trump in Butler, Pennsylvania. On July 13, Bitcoin’s price spiked minutes after the incident, highlighting the cryptocurrency’s sensitivity to political turmoil.
Bitcoin’s Rise and Market Sentiment
By July 15, Bitcoin had climbed to $64,671, marking a 5.8% increase over 24 hours and a 14.2% rise for the week. Other cryptocurrencies followed this upward trend, with Bitcoin peaking around $65,000 before settling at $63,664.
Austin Campbell, founder and managing partner at Zero-Knowledge Consulting, explained that assassination attempts typically bolster support for targeted candidates. Trump’s defiant emergence from the incident, captured in an iconic photograph, boosted his perceived strength and electoral prospects. Campbell noted, “Trump is seen as the vastly more pro-Bitcoin and pro-crypto candidate.”
Historical Context and Safe-Haven Status
Historically, assassination attempts on US presidents are rare and significant. The last such attempt occurred in 1981 with Ronald Reagan. These events can underscore Bitcoin’s appeal as a safe-haven asset. David Tawil, co-founder and president of ProChain Capital, stated, “I believe BTC is a safe-haven asset,” though he emphasized the political narrative over safe-haven status as the principal reason for Bitcoin’s recent surge.
Source: Evan Vucci/Associated Press
Tawil predicted that Trump’s increased election odds would lead to a more favorable crypto regulatory environment. He anticipates that a Trump administration would replace crypto-skeptical figures like SEC Chair Gary Gensler with crypto-friendly officials like Hester Pierce.
Global Perspective and Market Reactions
Winston Ma, co-founder of Dragon AI, noted that US election dynamics are more immediate influences on crypto markets than global uncertainties. He highlighted the crypto community’s perception of Trump and Republicans as proponents of business-friendly crypto regulations.
Justin d’Anethan, head of business development for Keyrock in the Asia-Pacific region, observed that Trump’s assassination attempt boosted his odds in prediction markets, correlating with Bitcoin’s price surge. At political betting site PredictIt, Trump’s victory contracts rose from $0.60 to $0.70 post-incident.
Broader Market Impact
The incident also affected other markets. Shares of gun and ammunition companies like Smith & Wesson, as well as crypto firms such as Coinbase and Marathon Digital, saw significant gains. Trump Media and Technology Group shares surged by 30%, according to Reuters.
Vitali Dervoed, co-founder and CEO of Spark, described the market’s initial shock and subsequent recovery, highlighting the event’s psychological impact on the crypto community.
In conclusion, the recent assassination attempt on Donald Trump has sparked significant market reactions, with Bitcoin prices soaring amid heightened political uncertainty and speculation about future regulatory changes.
